Commonwealth Bank of Australia (ASX: CBA) shares are trading around $152.43 on Monday.
That is much closer to their 52-week low of $146.97 than their high of $185.59.
So, could the CBA share price return to $180 in 2027?
Image source: Getty Images
Could CBA shares reach $180?
I think they could.
From $152.43, the CBA share price would need to rise around 18% to reach $180.
That is a decent gain, but it does not look unrealistic to me. After all, CBA shares have already traded above $180 during the past year.
I also remain positive on the business.
CBA is my preferred major Australian bank. It has strong positions across home loans, deposits, business banking, and everyday financial services.
I particularly like its digital offering. The CommBank app has become an important part of how many customers manage their finances, helping CBA build deeper relationships across multiple products.
The bank's size is another advantage. It has millions of customers and a large deposit base, giving it a strong platform to keep generating profits.
If CBA continues performing well, I think investors could become more positive on the shares again and push them back towards their previous highs.
Would $180 be too expensive?
This is where I would pay closer attention.
CBA has rarely looked cheap in recent years, and a share price of $180 would once again put it on a high valuation.
Consensus forecasts suggest earnings per share of $6.67 in FY27 and $6.86 in FY28.
At $180, that would put CBA shares on a price-to-earnings (P/E) ratio of roughly 27 times FY27 earnings and 26 times FY28 earnings.
That is a substantial premium for a bank.
Still, I think CBA deserves to trade at a higher valuation than its major rivals.
In my view, it is the strongest banking business in Australia, with a powerful customer franchise, leading digital capabilities, and a track record of producing substantial profits.
So, if the business continues delivering, I think a valuation around that level could be justified.
What about the dividend?
CBA also remains an attractive income stock.
Consensus estimates point to fully-franked dividends of $5.15 per share in FY27 and $5.30 per share in FY28.
At today's share price, the FY27 forecast represents a dividend yield of around 3.4%, before including any benefit from franking credits.
That is not the highest yield available from the major banks, but income is only part of the reason I like CBA.
I think the combination of a growing dividend and the potential for the share price to recover makes the overall investment case more interesting.
Foolish takeaway
For me, $180 does not look like a stretch for CBA.
The shares have come back a fair way, but I still think the business is in good shape and remains the major bank I would most want to own.
At today's price, I would be happy to buy and give CBA time to work its way back towards those previous highs.
